Judge signals she'll grant appeal of racino decision

An Albuquerque district judge indicated during a hearing last week she would grant an appeal by Coronado Partners to contest the New Mexico Racing Commission’s rejection of an application to build a horse-racing track and casino in Tucumcari.

District Judge Nancy Franchini said during a telephone hearing Dec. 13 she was dissatisfied with the arguments of the commission’s lawyer, Richard Bustamante, to dismiss Coronado Partners’ initial lawsuit with prejudice, meaning it cannot be refiled.

“I think it’s a valid appeal,” Franchini said.

Franchini ordered Bustamante to file a supplemental brief by Jan. 9 that more thoroughly lays out the commission’s arguments to dismiss the lawsuit.

Coronado Partners’ legal counsel and one of its principals, Logan attorney Warren Frost, can respond to Bustamante’s brief by Jan. 17. After that, Franchini said she would make “a quick turnaround” on a ruling.

Coronado’s lawsuit in late 2021 initially sought to prod the racing commission to issue a decision on the application.

Coronado Partners is proposing a so-called racino on Tucumcari’s east side that would employ at least 500 people and generate up to $55 million in revenue by 2025.

Bustamante claimed during the meeting last week that Coronado Partners had no statutory right to appeal the commission’s rejection of the application.

He also said the commission’s own rules state its decisions “shall be final and not subject to appeal.” Bustamante said Coronado was trying “to pass the ball to the judiciary.”

“They placed a bet on themselves,” he later said. “They lost the bet.”

Frost said the statute that prevents an appeal is unconstitutional.

“The legislative branch and executive branch can’t be shielded from judicial review,” he asserted.

Franchini told Bustamante his arguments were “not enough to make a decision” and ordered him to file a more complete brief next month.

She said the commission’s stance lacked a legal basis and that she was inclined to grant Coronado’s appeal.

Franchini in June granted Coronado’s request for a writ of mandamus against the racing commission and ordered it to make a decision on the Tucumcari application. A writ of mandamus compels another entity to perform its official duties.

Franchini last week also granted Coronado’s motion to include updated license applications in the case.

Frost stated in his motion the racing commission had rejected Coronado’s updated applications in April 2021 and October 2022.

Frost said during the hearing that Coronado Partners had “an obligation to keep current information” within the application and wanted to demonstrate it still was prepared to build a track in Tucumcari.

He said new information included a minor ownership change, new options on 200 acres for the site and a consultant’s report that showed a racino in Tucumcari still would be viable after the COVID-19 pandemic.

Frost said the commission not allowing an updated application would be “rewarding them for wrongful conduct. To refuse to accept it, it’s ridiculous.”

Franchini, citing her previous ruling that mentioned the May 2021 application, said that document and the October 2022 application would be allowed as evidence if an appeal was granted.

The racing commission also was ordered to supply a transcript from its regular October meeting.

In October after Franchini’s earlier ruling, the racing commission unanimously denied Coronado’s horse-racing license application.

Commission Chairman Sam Bregman said during the commission meeting that after reviewing the application and documents associated with it, he was inclined to reject it.

“At this time, I don’t believe it is in the public interest or health of the industry to grant this license,” Bregman said.

Bregman said New Mexico’s horse racing industry had seen declines in the number of horses and races since the commission earlier had rejected Coronado’s application in 2018.

“I don’t believe the industry is healthy enough to support a sixth license,” he said. “The industry has only gotten tougher.”

After the meeting, Frost vowed to bring the matter back to district court and ask Franchini to reverse the decision.